State (Department of Administration) v. Department of Industry

252 N.W.2d 353, 77 Wis. 2d 126, 1977 Wisc. LEXIS 1288, 14 Empl. Prac. Dec. (CCH) 7507, 14 Fair Empl. Prac. Cas. (BNA) 1189
CourtWisconsin Supreme Court
DecidedApril 19, 1977
DocketNo. 76-017
StatusPublished
Cited by8 cases

This text of 252 N.W.2d 353 (State (Department of Administration) v. Department of Industry) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State (Department of Administration) v. Department of Industry, 252 N.W.2d 353, 77 Wis. 2d 126, 1977 Wisc. LEXIS 1288, 14 Empl. Prac. Dec. (CCH) 7507, 14 Fair Empl. Prac. Cas. (BNA) 1189 (Wis. 1977).

Opinion

HANLEY, J.

The following issues are properly before this court upon appeal:

1. Was the promulgation of Pers 27 a valid exercise of power properly delegated by the legislature?

2. Does the limited hiring policy, as authorized by Pers 27, constitute discrimination in violation of the Wisconsin Fair Employment Act?

3. Does the limited hiring policy, as authorized by Pers 27 constitute discrimination in violation of Title VII of the Civil Rights Act of 1964?

4. Does the limited hiring policy, as authorized by Pers 27, constitute a denial of equal protection of the laws?

Delegation and Exercise of Legislative Power

The appellants contend Pers 27, authorizing the utilization of limited eligibility lists, is the exercise of administrative authority delegated by the legislature in sec. 16.08(7). To be valid, it is necessary that the limited hiring policy (1) be based upon a proper delegation of power by the legislature and (2) not constitute [134]*134administrative action in excess of the statutorily conferred authority.

In determining whether the legislature has properly delegated its power to an agency, this court applies the following rule:

“ ‘A delegation of legislative power to a subordinate agency will be upheld if the purpose of the delegating statute is ascertainable and there are procedural safeguards to insure that the board or agency acts within that legislative purpose.’ ” Westring v. James, 71 Wis. 2d 462, 468, 238 N.W.2d 695 (1976), quoting Watchmaking Examining Board v. Husar, 49 Wis.2d 526, 536, 182 N.W.2d 257 (1971).

Under sec. 16.03, Stats., the legislature has charged the Director of the Bureau of Personnel with the responsibility for the effective administration of the civil service and the authority to promulgate rules to carry out that responsibility. The general purpose and policy of the civil service is stated in sec. 16.01, Stats.:

“16.01 Statement of policy. (1) It is the purpose of this subchapter to provide state agencies and institutions of higher education with competent personnel which will furnish state services to its citizens as fairly, efficiently and effectively as possible.
“ (2) It is the policy of the state to maintain a strong coordinated personnel management program and to assure that postions in the classified service are filled through methods which apply the merit principle, with adequate civil service safeguards. To these ends the bureau of personnel with advice and quasi-judicial assistance by the personnel board shall develop, improve and protect a state-wide personnel management program which assures that the state hires the best qualified persons available and bases the treatment of its employes upon the relative value of each employe’s services and his demonstrated competence and fitness.”

Thus, the basic purpose of the legislature’s delegation is clear — the Director is to establish a system which tests [135]*135the ability of applicants for particular jobs so that the most qualified are employed.

The legislature has also, however, in sec. 16.08(7), Stats., provided for exceptional methods, evidently deviating from the strict merit principle, to be adopted by the Director. This section requires the Director to provide for exceptional employment situations such as to employ the mentally and physically handicapped and the disadvantaged.

The legislature’s purpose in enacting sec. 16.08(7) is obvious. It is clearly intended that the state, through the civil service, use its hiring power to provide jobs for those persons who are occupationally disadvantaged, in that, due to factors beyond their control, they cannot effectively compete for employment based upon strict merit principles. Consequently, “exceptional methods and kinds of employment” are authorized.

It is clear that sec. 16.08(7), in light of its general terms, constitutes a broad grant of legislative authority. This court, however, has emphasized that broad grants of legislative powers will be permitted where there are procedural and judicial safeguards against arbitrary, unreasonable or oppressive conduct of the agency. Schmidt v. Department of Local Affairs and Development, 39 Wis.2d 46, 158 N.W.2d 306 (1968); See also Westring v. James, supra.

The Director’s rule-making authority is attended by the procedural safeguards under the Administrative Procedure Act, ch. 227, Stats., requiring public hearings, and the validity of such rules may be challenged in the courts under sec. 227.05, Stats.

We think that the legislature has sufficiently, although generally, stated its purpose of sec. 16.08(7), and therefore the legislature’s delegation of power is valid, for the power conferred upon the Director is limited by procedural safeguards and review by the courts under the Administrative Procedure Act.

[136]*136Whether the enactment of Pers 27, authorizing the utilization of this limited hiring policy, exceeds the delegation of power conferred by the legislature is the next question to be considered. It is the general rule that an administrative agency has only those powers which are expressly conferred or which are fairly implied from the four corners of the statute under which it operates. Racine Fire & Police Comm. v. Stanfield, 70 Wis.2d 395, 399, 234 N.W.2d 307 (1975); Wisconsin Environmental Decade, Inc. v. Public Service Commission, 69 Wis.2d 1, 16, 230 N.W.2d 243 (1975). Therefore, no agency may issue a rule that is not expressly or impliedly authorized by the legislature. Kachian v. Optometry Examining Board, 44 Wis.2d 1, 8, 170 N.W.2d 743 (1969).

Nowhere in sec. 16.08(7) is there authority for the declaration of policy made in Pers 27 regarding extraordinary employment of minorities and women in order to correct past alleged evils of discrimination. Since sec. 16.08(7) merely authorizes “exceptional methods” to employ the “disadvantaged,” the establishment of the limited eligibility lists which deprive persons of the right to apply for civil service positions on the basis of race or sex cannot be said to be expressly authorized by the statute.

Thus, is the power to establish such an exclusive hiring procedure fairly implied from the express statutory grant within the four corners of the statute? This court has recognized the rule that any reasonable doubt of the existence of an implied power of an administrative agency should be resolved against the exercise of such authority. State ex rel. Farrell v. Schubert, 52 Wis.2d 351, 358, 190 N.W.2d 529 (1971). We are satisfied that such doubt exists in this situation, and therefore this power is not so implied.

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252 N.W.2d 353, 77 Wis. 2d 126, 1977 Wisc. LEXIS 1288, 14 Empl. Prac. Dec. (CCH) 7507, 14 Fair Empl. Prac. Cas. (BNA) 1189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-department-of-administration-v-department-of-industry-wis-1977.